- Oil prices appear headed for a period of stability at moderate levels
- Western Europe, Russia, China and India will benefit geopolitically
- Greater predictability will encourage investment and boost world growth
- Political tensions in oil-producing areas could generate bouts of volatility
After getting burned for years, many economists are reluctant to make predictions about oil prices. This report argues that crude is bound to stabilize somewhere between $50 and $60 per barrel. Volatility will still be acute, but the dynamic of supply and demand is now clear enough and unlikely to change in the near future.